By Alexandra Alper

WASHINGTON, (Reuters) – Chipmakers have a divided view on how to resist a proposed legislative amendment that would grant the U.S. broad new power to stop billions of dollars in U.S. investments into China. According to documents obtained by Reuters

This measure forms part of the House bill which would grant chipmakers $52 billion in additional funding to grow their operations. Some companies have been reluctant to oppose this package’s China investment restrictions.

However, the proposal for “outbound investments” could hinder these companies’ overseas investment. This has led some chipmakers advocating aggressive opposition to the inclusion of it in the chips bill that is being worked out by the Senate and House legislators.

According to one chipmaking executive, “It would seem hypocritical for companies beg for money but refuse to let government have a say whether they build new fabrications in China.”

A second industry executive spoke out against the ban, noting the fact that both chipmakers and the curb could be supported. He stated, “We can both walk and chew gum together.”

This funding places the industry in a difficult position. They must aggressively seek grants, but face headwinds in their foreign direct investment in Chinese factories as well as financial support for Chinese startups if the bill passes.

A White House event was held in January in which plans were made to construct a $20 million chip plant for Ohio. Intel Corp (NASDAQ:). Chief Executive Pat Gelsinger stated that even without funding from the government, “we will still start the Ohio site.” It won’t happen as quickly and it won’t grow nearly as fast.

Bloomberg in November reported that the company had also been looking to increase production at Chengdu’s plant. However, the Biden administration rejected the idea. Intel did not comment.

Although originally introduced as an independent bill by Senator John Cornyn (Republican Senator) and Senator Bob Casey (Republican Senator), the measure for outbound investments was added to the House’s massive bill. The bill included grants for chipmakers, which is designed to combat China’s rapid rise. Third source said it was crucial not to criticize Cornyn who is a strong advocate of chip funding.

Reuters was sent an email by the Semiconductor Industrial Association (SIA), which is quiet about this provision to its members last Wednesday, asking for their opinion on a statement describing the measure and urging a separate legislative procedure.

“SIA encourages policies that do no unnecessarily inhibit non-sensitive legitimate investment and associated commercial activity,” wrote the group in its third draft of the statement of principles. It was dated April 22, and is toned down from a previous version.

“SIA urges Congress to begin a process of review that includes formal hearings and stakeholder engagement before advancing outbound investments review policies.

SIA has declined to comment.

Biden’s administration supports the idea behind this measure. Jake Sullivan, the U.S. National Security Advisor to Joe Biden, stated in July that the government is working on investment screening. It also considers outbound investments as part of its efforts to position America for technology competition.

Politico reports that the Treasury Department tried to dampen the momentum of Congress against the measure. This prompted lawmakers to approve a small fact-finding pilot program rather than new regulatory powers.

Chamber of Commerce and other business groups have voiced their strong opposition to this legislative proposal. It would ask the U.S. trade representative to create a committee that will evaluate transactions and make recommendations to President Obama on which transactions are a threat to national security.

Rhodium’s study found that 43% of U.S. direct investments in China during the last two decades may have been subjected to screening according to the broad categories outlined by the proposal.

The National Foreign Trade Council is made up of members such as Amazon (NASDAQ), Facebook (NASDAQ), and Exxon. Chevron (NYSE:) has circulated to D.C. lobby groups a draft of its opposition letter. It referred to the “strong objection” measure and called for the establishment of a new regulator.

The letter was obtained from Reuters, and sent to the House and Senate leadership of each party. It states that “Creating a new Interagency Process will Compound Regulative Inefficiency and Invite Protectionism Under the Flag of National Security.”

The group refused to comment.